International Journal of Advances in Scientific Research and Engineering-IJASRE

Financial Performance Mediating the Effect of Corporate Social Responsibility on Corporate Value LQ 45

Article Category: Management Science

DOI: 10.31695/IJASRE.2019.33645

Pages: 23-30

Author: Siti Sunrowiyati,Grahita Chandrarin,Edi Subiyantoro

Abstract:

 This study aims to analyze the effect of CSR on financial performance, analyze CSR and financial performance of corporate value, analyze the impact of the financial performance of company value, and analyze the impact of CSR on company value through financial performance. The research design uses explanatory research, which tests the causality between variables through hypotheses that test the influence, relationships or effects of exogenous variables on endogenous variables. The samples in this study were 29 LQ 45 companies. The analysis technique used as many as path analysis. The analysis shows that CSR affects financial performance, which means that the greater the value of CSR issued by the company will be able to benefit the company and improve the quality of the company's financial performance. CSR affects the value of the company, which means that the implementation of CSR directs the effect on the company's value. Financial performance affects the value of the company, this proves that the magnitude of the value of financial performance and relevant information becomes a consideration in making investment decisions in the stock market affect the value of the company. Financial performance mediates the effect of CSR on corporate value, this proves that companies doing CSR can increase company value if financial performance increases.  

Keyword: CSR, Financial Performance, Corporate value.

This work is licensed under a Creative Commons Attribution 4.0 (International) Licence. (CC BY-NC 4.0)
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